The Ministry of Finance believes that the military tax of 15% of the cost of a vehicle at its first registration will not create problems for buyers or the car market in general, and that law enforcement agencies will be able to fight the shadowing of the market that critics predict.
«We have a security problem, our house is on fire, and you say that we shouldn’t buy fire extinguishing equipment, but rather buy a car. No problem, buy a new car, but additionally support the Armed Forces», — said Finance Minister Sergii Marchenko in an interview with RBC Ukraine
He added that buying a car in a country at war is not a critical need for «at the moment:
«Buying a car is not an urgent critical need right now. And for the security and defense sector, cars are imported duty-free and VAT-free».
The draft law submitted by the Cabinet of Ministers to the Rada on July 18 envisages an increase in tax revenues to UAH 140 billion — by raising the military tax rate to 5% (currently 1.5%) and obliging third-group individual entrepreneurs to pay 1%, as well as revising the amount of excise taxes and applying a 15% military tax when registering a car for the first time.
Earlier, the Chairman of the Budget Committee of the Verkhovna Rada Roksolana Pidlasa saidThe President said that if taxes are not raised, the military risks being left without funding as early as the end of September.
Meanwhile, Marchenko reminded that Ukraine spends 166 billion hryvnias on the security and defense sector every month, and an average of 5.6 billion hryvnias every day.
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